Tuesday, September 20, 2011

CIMB Research: Technical landscape deteriorating fast

KUALA LUMPUR: CIMB Equities Research said the bear flexed its muscles on Monday, Sept 19, pushing the FBM KLCI to a new 52-week low.

'Looking at the chart, it seems that prices are likely to dwindle towards the 1,400 psychological level soon,' it said.

CIMB Research said if this level is breached, the following support is at 1,391 and 1,370.

'Technical landscape is deteriorating fast. MACD has staged a dead cross, pushing the histogram bars into the negative territory while RSI has also hooked downward,' it said.

The research house said the resistance is at 1,432. The strong support turned resistance levels of 1,475-1,490 could continue to hinder any progress made by the bulls.

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